Commodities & markets, International issues, Studies

Analyzing Vertical Market Structure and Its Implications for Trade Liberalization and Market Access

A model is developed to characterize the vertically linked and concentrated nature of developed country food markets. This model is then parameterized and used to simulate the effects of varying food market structures on the benefits to developing country exporters of agricultural commodities from trade liberalization by developed countries. Results demonstrate that even relatively modest departures from perfect competition can cause much of the benefits from trade liberalization to flow to marketing firms instead of producers in the developing country.

Read full PDF article here: Analyzing Vertical Market Structure and Its Implications for Trade Liberalization and Market Access by Sexton, R.J., I. Sheldon, S. McCorriston, and H. Wang. University of California, Davis, June 2004.

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